Growth

The effects of investment decisions extend into the future and have to be endured for a longer period than the consequences of the current operating expenditure. Firm’s decision to invest in long-term assets has a decisive influence on the rate and direction of its growth. A wrong decision can prove disastrous for the continued survival of the firm; unwanted or unprofitable expansion of assets will result in heavy operating costs to the firm. On the other hand, inadequate investment in assets would make it difficult for Ute rum to compete successfully and maintain its market share.